Analysing figures from the Mortgage Advice Bureau (MAB) MyMAB and Homebuying apps, the firm found that just 19% of clients were homemovers and 14% remortgaged.
The average age of a first-time buyer in the UK was 34, with a typical deposit of £24,500. On average, they had an income of £35,900 and bought a home worth £226,000.
MAB’s data also found 47% of new homeowners got onto the property ladder solo, while 31% of first-time buyers had dependants.
The majority – 97% – were in full-time employment, despite this, almost half – 43% – had to use additional income to support affordability.
Mind the affordability gap
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Regional differences in first-time buyer trends
First-time buyers in London were found to face the most financial hurdles to homeownership.
At an average age of 36 and higher typical earnings of £51,000 per year, new homeowners in the English capital had deposits of £37,000 and saved more at £760 per month. Despite this, it took first-time buyers in London longer to get onto the property ladder, at 18 months.
A higher proportion – 65% – purchased by themselves and fewer reported having dependants, at 16%. MAB said this reflected the highest cost of living in London.
Across the rest of England, the average income of a first-time buyer was lower at £34,000, deposit sizes were £23,800 and they were looking to buy homes worth £220,300.
New buyers in Scotland were aged 35 on average and had incomes of £37,200, looking to buy homes worth £196,500. Some 58% of Scottish first-time buyers bought alone and 23% had dependants.
Buyers in Wales were the youngest, at 33, with lower incomes of £35,500. They saved £740 per month and a higher share had dependants, representing 37% of the sample.
Further, 54% of first-time buyers in Wales leveraged additional income to support their homeownership, the highest across all regions.
The lowest first-time buyer income was in Northern Ireland, at £29,000, as were the cheapest homes, averaging at £177,500.
Although they saved only £390 per month, Northern Irish first-time buyers managed to stump up an average deposit of £28,000.
A multifaceted market
Rachel Geddes, strategic lender relationship director at MAB, said: “The first-time buyer market is certainly multifaceted in nature, and our research only goes to underscore that. Just as there is no such thing as a typical first-time buyer, there’s also no ‘one-size-fits-all’ when it comes to finding the right mortgage.
“However, there’s always more we can be doing, as universal challenges like affordability, regional differences in property prices, and the cost of living will always remain. The average age of a first-time buyer at 34 is much too high, and is a blatant call to action for our industry to step up and do more. Understanding these trends is crucial for the policymakers, lenders, and service providers who are looking to support this crucial segment of the UK housing market.”
She added: “That being said, the future’s looking bright. Demand remains high, and with an increasing number of lenders enhancing their affordability criteria and offering innovative borrowing solutions, there’s never been a better time for aspiring buyers to get on the property ladder.
“With a wealth of opportunities at their fingertips, this is where the expertise of a broker comes into its own, helping customers get mortgage ready with a deal that aligns with their financial and personal goals.”
